Skip to main content

APNewsBreak: Tribe wants fee on wasted natural gas

By WTOP Staff

JAMES MacPHERSON
Associated Press

BISMARCK, N.D. (AP) — Tribal leaders on an American Indian reservation in the heart of North Dakota’s booming oil patch are proposing fees for companies that burn and waste natural gas.

The Three Affiliated Tribes outlined its plan to impose fees in a six-page document sent to oil companies. In it, the tribe said companies would be required to pay royalties for “flaring” natural gas to compensate for lost revenue when the gas isn’t brought to market and sold.

Oil production on the Fort Berthold Reservation accounts for about a third of the state’s oil output of more than 1 million barrels a day, which has made North Dakota the second-largest oil producing state in the country behind Texas.

The Associated Press obtained the documents from industry groups. Tribal officials didn’t return several phone messages seeking comment on Thursday.

Industry officials are questioning whether the tribe has the jurisdiction to impose such fees and warned that the change could slow oil production on the reservation. They note that tribal officials signed a tax agreement in 2008 that gave the state power to regulate reservation oil production.

Before that agreement, oil companies were hesitant to drill on the sovereign land due to complex tribal rules and tax uncertainty.

State officials said Thursday they were unaware of the tribe’s fee proposal and declined immediate comment.

“We certainly hope the state and the tribe can concur on who has regulatory authority,” said Ron Ness, president of the North Dakota Petroleum Council, a group representing more than 500 companies working in the state’s oil patch. “It doesn’t do anybody any good to try to determine whose rules you got to follow.”

Natural gas is a byproduct of oil drilling, but a third of it is burned off in North Dakota — at a cost of more than $1 million a month in lost state revenue — because building infrastructure to capture the gas hasn’t kept pace with oil drilling.

The Three Affiliated Tribes notified oil drillers late last week of the fee plan, which would require companies that burn-off natural gas to pay royalties beginning a month after a well has been drilled.

Separate documents also furnished by the oil companies to the AP show that tribal officials earlier proposed annual rights-of-way and other charges for the companies to develop gas-gathering systems and transmission pipelines on the Fort Berthold Reservation. The reservation, which spans a million acres in west-central North Dakota, is home to the Mandan, Hidatsa and Arikara tribes.

“All these things lead up to disincentives and a potential slowdown,” said Eric Dille, the government affairs manager for Houston-based EOG Resources Inc., one of the largest drillers operating on the reservation. “It’s very problematic and does nothing to get pipe in the ground.”

Under North Dakota law, oil producers can flare natural gas for a year without paying taxes or royalties on it. Companies can then ask state regulators for an extension because of the high costs of moving the gas to market. Almost all the extensions requested in recent years were granted, records show.

State officials have said that flaring on the Fort Berthold Reservation accounts for more than 30 percent of flaring in the state.

Three Affiliated Tribes officials said money from the fees would help pay to monitor the effect of greenhouse gas emissions on tribal members, and help develop a natural gas system to make electricity for the reservation.

“More than ever before, the tribe supports cleaner energy, cleaner air,” they said in the document sent to oil companies said.

The tribe’s proposal comes less than a month after North Dakota regulators adopted the most stringent rules to date aimed at reducing flaring. The state Industrial Commission, which regulates North Dakota’s oil and gas industry, endorsed a policy in July that sets goals to reduce flaring in incremental steps through 2020. The new rules allow regulators to set production limits on oil companies if the targets are not met.

The tribe’s proposal suggests that the state’s plan does not go far enough.

“The tribe’s belief (is) that operators will actively initiate (gas capture plans) when they have to the motivation of paying royalties on the flared gas,” the proposal said.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
Read Next Story

Related News

Frustration grows in Venezuela as earthquake death toll reaches 1,430

Israel and Lebanon sign framework agreement with US in ‘first step’ toward peace, Rubio says

Trump-endorsed populist poised to become Colombia’s next president as rival challenges vote